Earlier it was observed that polarization rotation in an AWG built from birefringent waveguides can result in sidelobes in its response. This effect was measured in a polarization sensitive AWG with an orthogonal layout. Now we investigate through detailed simulation whether this effect also exists in polarization desensitised AWGs. It is shown that a dispersion compensated AWG does not suffer from a polarization sidelobe. Alternatively, the AWG can be designed to minimize polarization rotation to suppress the sidelobe.